Your mortgage, your terms
Most Canadians sign up for mortgage insurance at the bank when they close on their home. It's easy, it's in the paperwork, and easy to forget about. But bank-issued mortgage insurance protects the bank, not your family. The payout goes directly to the lender, your coverage shrinks as you pay down the mortgage, and if you move or switch lenders you may have to requalify from scratch.
Personal mortgage insurance works differently. You own the policy. You name the beneficiary. The death benefit is stable. And if your health is excellent, your rates may be significantly better than what the bank can offer.
Personal insurance vs bank mortgage insurance
| Feature | Personal insuranceRecommended | Bank mortgage insurance |
|---|---|---|
| Beneficiary | You choose: spouse, child, estate, or anyone else | The bank is the sole beneficiary |
| Policy ownership | You own the policy outright, with no third-party control | The bank owns the policy |
| Death benefit | Stays the same unless you choose to reduce it | Shrinks as the mortgage balance decreases |
| Portability | Moves with you, no need to requalify when you switch lenders or homes | Tied to the lender; you lose coverage when you move or refinance |
| Coverage flexibility | Renew, convert, decrease, or increase coverage as your life changes | Fixed to the original mortgage terms |
| After the mortgage is paid off | Coverage can continue or convert, still protecting your family | Coverage ends when the mortgage ends |
| Payout use | Beneficiary decides: pay off the mortgage, invest, cover expenses | Applied directly to the mortgage balance, nothing left over |
| Rates | Highly competitive for applicants in excellent health | Standardised group rates with no health underwriting advantage |
Beneficiary
Personal: You choose: spouse, child, estate, or anyone else
Bank: The bank is the sole beneficiary
Policy ownership
Personal: You own the policy outright, with no third-party control
Bank: The bank owns the policy
Death benefit
Personal: Stays the same unless you choose to reduce it
Bank: Shrinks as the mortgage balance decreases
Portability
Personal: Moves with you, no need to requalify when you switch lenders or homes
Bank: Tied to the lender; you lose coverage when you move or refinance
Coverage flexibility
Personal: Renew, convert, decrease, or increase coverage as your life changes
Bank: Fixed to the original mortgage terms
After the mortgage is paid off
Personal: Coverage can continue or convert, still protecting your family
Bank: Coverage ends when the mortgage ends
Payout use
Personal: Beneficiary decides: pay off the mortgage, invest, cover expenses
Bank: Applied directly to the mortgage balance, nothing left over
Rates
Personal: Highly competitive for applicants in excellent health
Bank: Standardised group rates with no health underwriting advantage
Coverage terms and available options vary by insurer and individual health profile. Jatinder will walk you through the details before any policy is issued.
Who this is for
Homeowners who want their family to control the payout, not the bank.
Anyone who has recently purchased a home or is about to close.
Homeowners planning to move or refinance and don't want to lose coverage.
People in good-to-excellent health who may qualify for better rates than a bank group policy offers.
Service area
Jatinder Singh and his team serve homeowners across Ontario and Alberta. Policies can be arranged by phone or in person at our Brampton office at 195 Queen St E, Brampton, ON L6W 2B3.